EU fiscal rules
Government approves Finland’s Medium-Term Plan

In the plan, Finland commits to complying with a net expenditure path (i.e. a maximum permitted growth rate for net expenditure) for the next four years. The net expenditure path is compatible with the adjustment measures outlined in the Government Programme and General Government Fiscal Plan.

Finland’s Medium-Term Plan 2025–2028 meets the requirements set by the EU's new fiscal rules. The rules require Member States to submit a national medium-term fiscal-structural plan for four or five years, depending on the length of the electoral term.
 
Finland is applying for an extension to the adjustment period. The extension is underpinned by a set of reforms and investments made up of parts of Finland’s Recovery and Resilience Plan (RRP) and two parts of the social security reform. The net expenditure path for 2025–2028 presented in Finland’s plan is compatible with the adjustment measures outlined in the Government Programme and General Government Fiscal Plan, which will strengthen general government finances by EUR 9 billion.

Commission to assess plan

The Ministry of Finance published a draft of Finland’s Medium-Term Plan on 23 September. The Government submitted a Prime Minister's announcement on the plan to Parliament on 2 October. In addition to Parliament, the Economic Council was consulted on the plan and an open consultation was held.

The Government approved Finland’s Medium-Term Plan on Thursday 10 October, and the Ministry of Finance will submit the plan to the EU. The European Commission will next assess the Member States’ plans, including the net expenditure paths, after which the Council of the European Union will approve them. 

The Member States will submit progress reports on the implementation of their plans to the Commission by 30 April. 

Finland also to submit Draft Budgetary Plan to EU

The Government also approved next year’s Draft Budgetary Plan (DBP), which the Ministry of Finance will submit to the EU. The plan is part of the euro area’s coordinated surveillance exercise and is based on the Government’s budget proposal for next year. 

In the Draft Budgetary Plan, Finland is requesting activation of the national escape clause. If activated by the Council, the escape clause would under certain conditions allow Finland to deviate from the net expenditure path set by the Council. The activation of the clause would also affect the assessment of excessive deficit.

Inquiries:
Marketta Henriksson, Head of Secretariat for EU Affairs, tel. +358 295 530 441, marketta.henriksson(at)gov.fi